The Association of R&D and Capital Expenditures with Subsequent Earnings Variability

Autor:	Arthur C. Allen, Wei Zhang, Steven F. Cahan
Rok vydání:	2007
Předmět:	Microeconomics Incentive Accounting Remuneration Business Management and Accounting (miscellaneous) Insider trading Sensitivity (control systems) Business Proxy (statistics) Private information retrieval Finance
Zdroj:	Journal of Business Finance & Accounting. 34:222-246
ISSN:	1468-5957 0306-686X
DOI:	10.1111/j.1468-5957.2006.00651.x
Popis:	We examine whether the sensitivity of pay to performance is associated with the amount of insider trading that managers undertake. Because insider trading profits represent an alternative form of compensation, we expect that firms will consider the compensation component provided by insider trading when designing remuneration contracts. Employing a proxy for insider trading that captures the degree to which managers trade on private information, we find evidence that an increased (a decreased) level of insider trading is associated with a decreased (an increased) pay performance sensitivity.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::9a46795c1d036093b7167ccd4fc68a77 https://doi.org/10.1111/j.1468-5957.2006.00651.x Zobrazit plný text záznamu Plný text ve formátu PDF